The Texas foreclosure process is the fastest in the nation. If you need to stop Texas home foreclosure, a deed in lieu of foreclosure is an option.
It only takes one missed mortgage payment before your lender can begin foreclosure proceedings in Texas. If you can no longer afford your mortgage, you can stop Texas home foreclosures with a deed in lieu of foreclosure. While you will not keep your home with this option, you will avoid the negative impact of foreclosure on your credit.
You might face a foreclosure because you lost your job, had personal problems or even spent months in the hospital. Many lenders understand that disasters happen, which is why those lenders recommend you contact them as soon as a problem occurs. The longer your mortgage goes unpaid, the more likely it is that you will face foreclosure. If you do not qualify for any state or federal programs for avoiding foreclosure, a deed in lieu may be your best foreclosure alternative.
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A Texas deed in lieu (DIL) of foreclosure lets you walk away from your home free and clear. You give the title to your property back to the lender. The U. S. Department of Housing and Urban Development (HUD) has a program to help you get a DIL from your lender and you may also qualify for up to $3,000 in relocation money. This is one option of the Home Affordable Foreclosure Alternatives Program (HAFA). The HAFA options for exiting your mortgage inclucde DIL and short sale. You may also request a DIL directly from your lender, but it will probably not offer any relocation money.
Before seeking a deed in lieu of foreclosure in Texas, talk to a HUD housing counselor about your other options. You may qualify for state funds to make your mortgage payments for a period of time or programs that can make your mortgage payments more affordable.
A foreclosure can stay on your credit report for seven years, making it difficult to get a loan in the future. In comparison, a DIL is on your credit for three years. So a deed in lieu of foreclosure in Texas is a better alternative than foreclosure if you do not qualify for other programs.